Pellet Stove Payback Period?

Electric is really high in CT. I save about $200.00 a month on heat minimum for Dec, Jan. and Feb. Pellet cost included. Average electric bill was $580 and Electric only(no heat) is $120.00.
I bought my first stove used for $800 and paid it off the first year. Burned it for 8 years with no major repairs needed. I have saved on average about $1000.00 total each year for 7 years. I am way a head of the game. My Omega was basically free because of the total savings so far. And I think the furnace I will get next is also paid for in advance.

It all depends on your circumstance's and what other fuel you are up against. Natural gas is the closest(besides wood or coal) I could find to pellets at the time. But there is no gas near me.

We like others were put into a corner in 2008.
In May of 2008 we were looking at $4.50/gal for oil.
We had been burning about 925 gal of oil per year for heat/hot water.
Math shows that the cost would have been $4163/yr for
heat/hot water for a 24'X32" Cape!! Enough OPEC!!
We have reduced our oil consumption from 925 to 400 gal.
We are running our 1st floor between 72-74F vs 68 with oil.
The 2nd floor runs between 63 and 68. (Use oil to maintain 67 in North bedroom)

Pellet prices have been going down since we bought the stove.
1st year- $314/ton
2nd year- $274/TON
Right now we can get them for $235/ton.
So, for this year oil would have been 925 gal X $2.25(Avg)= $2081 (No pellet stove)

With pellets: This year $1057 for pellets and $900 for oil or $1957 total
We saved approx. $124!!
But, we are warmer and the majority of money is being spent locally.

I looked at the pellet stove but couldn't swing the numbers.

If you've got the layout for space heating then great, but there's only so much you can figure on pushing the heat where you want it.
Cardinal rule: 1 ton of pellets = 100 gallons of oil. You can get better than that because of space heating vs house heating from everyone I've talked to the numbers are about right because there's a tendency to keep your house a lot warmer.

btuser said:

I looked at the pellet stove but couldn't swing the numbers.

If you've got the layout for space heating then great, but there's only so much you can figure on pushing the heat where you want it.
Cardinal rule: 1 ton of pellets = 100 gallons of oil. You can get better than that because of space heating vs house heating from everyone I've talked to the numbers are about right because there's a tendency to keep your house a lot warmer.

Click to expand...

I agree, it is all about the layout of your house if you are looking at it only as a financial investment. I have an old English barn conversion and a completely open floor plan on the 1st floor and the stove sets directly under a huge loft that allows the 3 upstairs bedrooms and bath direct access to the heat when doors are left open. I can easily heat the entire house to 70 degrees with my little englander burning one bag a day. I turn off my stove when I go to bed around 11pm. I have the oil furnace set at 65 to come on at 11pm to 6am.
When it's real cold I worry about the pipes in the basement because the furnace never comes on during the day except to heat the hot water. So I keep a small electric heater next to my water tank set to 45 degrees but I have never seen it come on in 2 years.
The OP should also consider if he looses power with all that elect heat he will need a big generator, When I loose power I can run my heater on a little honda 2000 gen that also runs my fridge and propane range all at the same time.

First off, as mentioned, a heat pumps abilities go right out the window below 40F

A ground coil (below two feet the temp is about 5o year round most places) is the ticket anyplace the temps get COLD

Now as far as payback on the pellet stove.

Buying a new unit for $2K to $4K is gonna really suck as far as payback goes.
With Pellet Cost where it is the stretch on the payback becomes LOOOOOOOONG.

NOW
I have a different concept on the issue.

I never buy new

Recently bought two (New to us) Whitfield Pellet stoves.

A Prodigy 2 with a hearth pad for $200
An Advantage 2T for $200

Now I also burn waste nut shells.

The payoff time is in months as compared to many many years if at all.

I heat the house for about $1 a day.
My house came with straight electric heat.

3 Pellet stoves and two of them are fed alternative fuels.
Have a Quad that stands by for very cold weather or if I need to be out of town and just keep it set to come on below 65F


Personallly I would watch Craigs List and scare up a nice used stove.

The folks here can advise on the particulars of the different brands.

These little creatures are not difficult to install, maintain or repair.

Most printed material (Owners manuals/repair manuals) are available online.


Best

Snowy